Aerospace insulated from recession

Thursday, November 05, 2009

The UK aerospace industry and its supply chain are not likely to feel the full effects of the economic downturn until 2011, according to leading industry figures.

Speaking to the Business Innovation and Skills select committee, Bob Keen, head of UK government relations at BAE Systems, said: "The long-term nature of the business means that the impact in the short term has been less than it has in other industries.

"Clearly against the background of the public deficit which the UK is facing there is bound to be increasing pressure on the defence budget, which will in turn affect MoD procurements and investment in research and technology in the long term. Whilst the short-term effects have been relatively small, the longer term impact could be more significant.

Ian Godden, Chairman of trade body ADS, told the committee: "On the civil side next year, and on defence probably two or three years from now, it's going to be squeezed quite significantly."

Responding to a question from Liberal Democrat Mark Oaten, Godden said: "I don't think we've seen the full pain yet, I think that's coming next year or the year after."